NanoSteel closes $15M equity round

DAVID PARATORE, NANOSTEEL CEO and president, says that the company's recent $15 million round of equity investment will allow it to concentrate on developing its lightweight steel alloy and getting manufacturers to use the material.  / PBN FILE PHOTO/MICHAEL SALERNO
DAVID PARATORE, NANOSTEEL CEO and president, says that the company's recent $15 million round of equity investment will allow it to concentrate on developing its lightweight steel alloy and getting manufacturers to use the material. / PBN FILE PHOTO/MICHAEL SALERNO

PROVIDENCE – NanoSteel Company Inc., an advanced materials firm, recently closed a multimillion dollar equity round, opening the door for commercialization of its high-strength, lightweight sheet steel.

NanoSteel, founded in 2002, is a private company that designs and commercializes patented steels. Its current focus are lightweight sheet steel for the auto industry and metal powders for 3D printing. The company, based in Providence, didn’t immediately disclose financial details related to the round, but a federal filing shows the company raised at least $15 million.

General Motors Co.’s venture capital arm GM Ventures led the round, as the company is interested in NanoSteel’s lightweight material. NanoSteel says the goal of its sheet steel is “to assist automakers in building new, affordable, lightweight vehicles to meet rising global fuel economy regulations,” according to a press release.

Lear Corp., a Fortune 500 manufacturer of automotive seating and electrical distribution systems, and SPDG, a Belgium-based automotive company, also participated in the round as new investors. “After initial testing of NanoSteel’s [sheet steel], we are optimistic about its potential to contribute lighter materials for our vehicle seating structures,” said Matthew J. Simoncini, Lear president, CEO and director. “Helping our customers meet their fuel economy targets is a clear priority for Lear, and we are enthusiastic supporters of new lighter-weight solutions that would allow us to use our current manufacturing infrastructure.”

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GM Ventures has invested in NanoSteel at least twice before, according to Crunchbase Inc., and David Paratore, NanoSteel president and CEO, says the new influx of money signals an inflection point for the company.

“Our focus has shifted from technology development to product deployment with our steel partners and automotive customers,” he said. “Our relationships with Fortune 500-level partners have been a major factor in our accomplishments thus far and will be key to our success moving forward.”

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